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[Senate Report 108-247]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 460
108th Congress                                                   Report
                                 SENATE
 2nd Session                                                    108-247
======================================================================

 
  THE STABILIZATION AND RECONSTRUCTION CIVILIAN MANAGEMENT ACT OF 2004

                                _______
                                

                 March 18, 2004.--Ordered to be printed

 Filed under the authority of the order of the Senate of March 12, 2004

                                _______
                                

          Mr. Lugar, from the Committee on Foreign Relations,
                        submitted the following

                              R E P O R T

                         [To accompany S. 2127]

    The Committee on Foreign Relations, having had under 
consideration a bill (S. 2127) to build operational readiness 
in civilian agencies, and for other purposes, reports favorably 
thereon and recommends that the bill do pass.

                                CONTENTS

                                                                   Page

  I. Purpose..........................................................1
 II. Background.......................................................2
III. Committee Action.................................................4
 IV. Section-by-Section Analysis......................................4
  V. Cost Estimate....................................................9
 VI. Evaluation of Regulatory Impact.................................11
VII. Changes in Existing Law.........................................11

                               I. Purpose

    The Stabilization and Reconstruction Civilian Management 
Act of 2004 is designed to strengthen the capacity of civilian 
foreign affairs agencies to respond quickly and effectively to 
overseas crises, including post-conflict and other complex 
emergencies. It creates a new office in the State Department to 
plan and coordinate civilian efforts and also creates a new 
civilian Response Readiness Force that includes a Response 
Readiness Corps and a Reserve component made up of volunteers 
from the foreign affairs agencies, the other civilian agencies 
of the U.S. Government, and from State and local governments 
and the private sector. It also provides for education and 
training for both the Corps and the Reserve. It authorizes 
appropriations for emergency funding to be made available 
following a Presidential determination that it is in the 
national interest to assist a country that is in, or 
transitioning from, conflict or civil strife. It also 
authorizes appropriations to be used to hire new personnel, 
reimburse other agencies for seconded personnel, and establish 
new education and training programs. Finally, it recommends the 
establishment of a new directorate of stabilization and 
reconstruction activities within the National Security Council, 
as well as the creation of a standing interagency committee to 
oversee the formulation and execution of stabilization and 
reconstruction policy.

                             II. Background

    Since the end of the cold war, the United States has 
undertaken several post-conflict stabilization and 
reconstruction operations that have been important to the 
national security interests of the United States. Iraq is the 
sixth major post-conflict effort that the U.S. has mounted in 
12 years. In the Balkans, Africa, the Caribbean, Afghanistan, 
and now in Iraq, the U.S. Government has cobbled together 
plans, people and resources in an ad hoc fashion, usually with 
the Defense Department in the lead. Subsequent to U.S. military 
operations in Iraq and Afghanistan, and cognizant of the 
difficulties of the ongoing transitions in those two nations, 
the committee recognized the need for structural change within 
the U.S. Government to better plan and carry out the civilian 
component of stabilization and reconstruction activities.
    This legislation is intended to improve the capability of 
U.S. civilian agencies to respond quickly and effectively to 
post-conflict stabilization and reconstruction crises. It was 
developed in close consultation with experts from inside and 
outside of government. At the invitation of the chairman and 
ranking member, a Policy Advisory Group convened and provided 
advice on how best to improve the U.S. response to such 
emergencies. The advisory group held a series of discussions in 
which committee members, group participants, and invited 
experts spoke frankly about their ideas, developed over years 
of experience, to improve U.S. readiness and responsiveness to 
stabilization and reconstruction crises. The group focused 
specifically on the response of civilian agencies and their 
coordination with Department of Defense and other agency 
efforts.
    The committee was further informed by hearings and 
briefings that explored the insight and considered the 
testimony of administration officials, policy experts, and 
representatives of non-governmental and international 
organizations on the unique challenges the United States is 
facing in Afghanistan and Iraq. In the first congressional 
visit to post-war Iraq, Senators Lugar, Biden and Hagel 
traveled to Baghdad and visited the Coalition Provisional 
Authority in June 2003. This visit informed the discussion of 
stabilization and reconstruction with timely, first-hand 
knowledge of the complexity and difficulties of transition in 
the immediate aftermath of war.
    Based on these extensive inquiries, the committee has 
concluded that the foreign affairs agencies (the Department of 
State and USAID) and other civilian agencies, including the 
Departments of the Treasury, Agriculture, Health and Human 
Services, Justice, and Commerce, have often participated in 
stabilization and reconstruction operations in conflict and 
post-conflict environments, but they have lacked adequate 
resources and the organizational structure to undertake the 
full range of required activities in a timely and comprehensive 
fashion. Better preparation and improved contingency planning 
are essential if there is to be a robust civilian partner to 
the military in the stabilization and reconstruction phase of 
any conflict. A sustained inter-agency effort, led by the 
National Security Council, is crucial to its success.
    This bill is designed to improve the operation of the 
foreign affairs agencies so that they are better organized to 
plan, coordinate and execute overseas crisis response in 
cooperation with other relevant civilian agencies of the 
government, and with the military, if required. The committee 
envisions the Secretary of State leading the organizational 
effort in full consultation with the Administrator of the U.S. 
Agency for International Development, an agency whose technical 
skills and operational experience are invaluable both in 
Washington and in the field.
    The committee intends that the bill will enable the 
government to identify and have at the ready contingency plans 
to fill gaps that are often present in various types of 
reconstruction and stabilization emergencies. Restoring and 
maintaining public order during and in the aftermath of 
conflict is one such example. While military police and civil 
affairs units can serve in emergency situations, there is need 
for a standing civilian capability to promptly undertake rule 
of law functions, including such functions as constabulary, 
police, judicial and corrections. Whether drawing on 
international capacity or relying on U.S. capacity alone, plans 
should be in place to meet this and other recurring needs that 
experience demonstrates will be necessary.
    This bill recognizes that the international community can 
play a vital role in this effort. One important function of the 
new State Department office created by the bill is to develop a 
clear vision of the comparative advantages, the objectives and 
strategies, and the corresponding capabilities of all possible 
international contributors to stabilization and reconstruction 
missions. The committee recognizes the specific skills that the 
United Nations and its specialized agencies, as well as non-
governmental organizations, and other individual nations can 
bring to conflict and post-conflict situations. Their expertise 
ranges from humanitarian response, to support for rule of law 
efforts and reconstitution of government, to reconstruction of 
infrastructure and delivery of public services. The committee 
recommends that the United States make every effort to improve 
international capabilities and particularly urges NATO and its 
member states to develop increased capacity. This investment 
should pay off in enhanced interoperability, increased burden-
sharing and quicker reaction time. One proposal that the 
committee recommends be considered is support for an 
international rule of law training center in Europe that would 
focus on the full spectrum of needs in post-conflict 
situations.

                         III. Committee Action

    The committee held a public hearing on March 3, 2004, and 
considered the testimony of three expert witnesses who had 
participated in the Policy Advisory Group. In this and in 
previous hearings, the committee examined past experience and 
considered extensive studies of best practices from the Second 
World War to the present.
    At a business meeting on March 4, 2004, the committee 
considered S. 2127. No amendments were offered. The committee 
ordered the bill reported by a vote of 19 to 0. Ayes: Senators 
Lugar, Hagel, Chafee, Allen, Brownback, Enzi, Voinovich, 
Alexander, Coleman, Sununu, Biden, Sarbanes, Dodd, Kerry, 
Feingold, Boxer, Nelson, Rockefeller, and Corzine.

                    IV. Section-by-Section Analysis

Section 1. Short title

    This section designates the short title of the bill.

Section 2. Finding, Purpose

    This section lists findings that explain the need for 
legislation and the purpose of such legislation.

Section 3. Definitions

    This section provides definitions of certain terms in the 
bill.

Section 4. Sense of Congress

    This section states the sense of Congress on multiple ways 
to improve stabilization and reconstruction activities; 
specifically:

          (1) Strengthening the civilian elements to respond to 
        stabilization and reconstruction crises overseas;
          (2) Establishing a new system of planning, 
        organization, personnel policies and education and 
        training and the provision of adequate resources;
          (3) Encouraging the international community, non-
        governmental organizations, the UN and its specialized 
        agencies to participate;
          (4) Urging the President to establish a new 
        directorate of stabilization and reconstruction 
        activities within the National Security Council;
          (5) Urging the President to establish a standing 
        committee to oversee the formulation and execution of 
        stabilization and reconstruction policy, chaired by the 
        National Security Advisor with membership of 
        appropriate agencies;
          (6) Establishing a personnel exchange program between 
        the Departments of State and Defense and other agencies 
        to enhance the stabilization and reconstruction skills 
        of military and civilian personnel and their ability to 
        undertake joint operations. Personnel exchanges should 
        include exchanges to regional and specialized commands 
        as well as joint and service schools to ensure a 
        broader base of interaction between agencies;
          (7) Urging other civilian agencies to work with the 
        Department of Defense to establish similar exchange 
        programs.

Section 5. Authority to Provide Assistance for Stabilization and 
        Reconstruction Crises

    This section provides the President with the authority, 
after consultations with Congress, to determine that it is in 
the national interest to provide assistance to a country that 
is in, or transitioning from conflict, and to provide such 
assistance from the $100 million emergency fund authorized in 
this section, in addition to amounts otherwise made available 
for such purposes, as well as from commodities and services 
from the inventory of Federal agencies. The funding mechanism 
and the authority to replenish funds in this section are 
similar to current authorities that are used to respond to 
refugee and migration crises, but the exercise of the authority 
has been made subject to certain conditions required by Section 
614 of the Foreign Assistance Act, an extraordinary authority 
that is used sparingly and only after extensive consultations 
with Congress. The committee intends that this authority be 
exercised in the same manner as Section 614. The provision 
authorizes the annual replenishment of the emergency fund 
without fiscal year limitations.
    U.S. funding mechanisms for post-conflict operations can 
lack flexibility and effective mechanisms for emergency 
contracting and procurement. The funds in this section are 
intended to provide a quick start on such time-sensitive 
activities as the restoration of public order, political and 
civic reorganization, humanitarian aid, infrastructure repair 
and the re-establishment of basic services.

Section 6. Office of International Stabilization and Reconstruction

    This section creates a new ``Office of International 
Stabilization and Reconstruction'' within the State Department 
to be headed by a Coordinator appointed by the President with 
the advice and consent of the Senate. The Coordinator will 
report directly to the Secretary and have the rank of 
``Ambassador-at-Large.'' It also states that the President may 
designate either the Coordinator or another individual to take 
the lead in particular crises.
    This section outlines the functions of the Office of 
International Stabilization and Reconstruction in both non-
emergency and emergency situations. The committee expects the 
office to work in coordination with relevant bureaus within the 
State Department, USAID and other relevant organizations. 
Specifically, the committee encourages the naming of a USAID 
official as the Deputy Coordinator. The committee envisions the 
office to be staffed by no more than 75 officials from the 
State Department and USAID, as well as officials from other 
civilian agencies temporarily seconded to provide expertise and 
inter-agency coordination. In monitoring for potential crises, 
the office should draw on current intelligence, data collection 
and monitoring efforts already underway in executive branch 
agencies. In its planning, the office should also draw on 
expertise developed at USAID as part of its disaster assistance 
response function. The office should have the capacity to send 
assessment teams on very short notice into crisis situations 
and should also be able to send civilians as part of joint 
civilian/military teams to help manage the full scope of 
responses necessary in the early stages of such crises.
    The committee intends for the Coordinator to plan for and, 
when designated by the President, to be able to oversee the 
implementation of activities in a crisis. This legislation is 
not intended to limit the prerogatives of the President by pre-
determining either the agency to lead the effort or the 
individual to be placed in charge.

Section 7. Response Readiness Force

    This section authorizes the Secretary of State, in 
coordination with the USAID Administrator, to establish a 
Response Readiness Force that consists of both active duty and 
reserve personnel. The Response Readiness Corps, the active 
duty component of the Force, will consist of up to 250 
individuals specially recruited to be the civilian vanguard of 
stabilization and reconstruction emergency activities. Such a 
Corps will consist of individuals who are trained and 
experienced in managing specific needed functions, are able to 
work with the U.S. military if necessary, and are willing to 
serve wherever they may be needed. Their areas of expertise 
could include, but not be limited to, public information and 
communications, rule of law, governance and civil 
administration, security and public order, health and 
education, and construction and engineering. They will also 
have a range of regional expertise and language skills. The 
committee envisions a mix of Foreign Service and Civil Service 
personnel from State Department and USAID to constitute the 
Corps. When not serving on stabilization and reconstruction 
missions, members of the Corps will be available to work in 
Department headquarters in Washington DC, or in embassies and 
USAID missions to meet requirements as requested by ambassadors 
or USAID mission directors.
    This bill also establishes a ``Response Readiness Reserve'' 
made up of Federal and at least 500 non-federal employees who 
have volunteered for deployment and have the skills and 
training to provide assistance in support of stabilization and 
reconstruction activities overseas. Such a pool of reserves 
will include specialists in the full spectrum of functions 
needed, from judicial experts to engineers. The Reserves would 
draw volunteers from the foreign affairs agencies and other 
civilian Federal agencies, including the approximately 10,000 
Foreign Service Nationals who are locally hired to work in U.S. 
embassies around the world. Foreign Service Nationals have 
language skills, cultural sensitivity, and an understanding of 
how the U.S. Government works abroad--all valuable resources 
when addressing a variety of stabilization and reconstruction 
requirements. Non-federal employees could be drawn from the 
ranks of retired Foreign Service officers, former Peace Corps 
volunteers, and retired military, as well as State and local 
governments. Such examples are intended to be illustrative 
rather than exclusionary, as skills and willingness to serve 
are spread widely among the American people.
    The committee envisions the establishment of the Corps and 
the Reserves as a joint endeavor by the State Department and 
USAID and intends that the current State-AID Policy Council, 
co-chaired by the Deputy Secretary and the USAID Administrator, 
would provide the collaborative venue within which the required 
coordination and integration can take place in a way in which 
both agencies can be strengthened to carry out stabilization 
and reconstruction activities. The committee would like to see 
within the Washington, D.C. headquarters some of the same 
operational collaboration and mutual sense of purpose and 
priorities that Members have witnessed between the two agencies 
in the field.
    The section also creates employment authorities and 
establishes a reporting requirement regarding the establishment 
of the Corps and Reserves. The committee encourages the 
Secretary to develop proposals to provide pay and benefit 
incentives to members of the Corps and Reserves, as well as 
recommend any legislation that may be necessary to provide job 
protections to such members when they are called to service 
under the authority of this Act.

Section 8. Stabilization and Reconstruction Training and Education

    This section gives the Secretary of State, in cooperation 
with Secretary of Defense, the Administrator of the U.S. Agency 
for International Development, and the Secretary of the Army, 
the authority to develop and establish new stabilization and 
reconstruction training curricula for use in programs 
administered by the Foreign Service Institute, the National 
Defense University, and the Stabilization and Peacekeeping 
Institute at the Army War College. The committee also 
recognizes the excellent training programs at the Naval Post 
Graduate School and the U.S. Institute for Peace and encourages 
that they be included in the development of a comprehensive 
training program.
    Training of civilian government personnel to assist in 
post-conflict operations has been uneven. Some training 
opportunities already exist, but it is still the case that the 
U.S. Government deploys civilians to stabilization and 
reconstruction operations with little or no specialized 
training for the post-conflict environment. Even when U.S. 
personnel receive solid training in their particular skill 
area, they rarely have had an opportunity to train with their 
counterparts in other U.S. agencies. This is an important gap 
to fill.
    Therefore, the objective of the training curricula required 
by this section is to prepare participants from the different 
civilian agencies for the tasks at every phase--from 
contingency planning, to working with the military if 
necessary, to the full spectrum of stabilization and 
reconstruction tasks. Effective war-gaming/scenario training 
should be part of the course and should prepare participants to 
work on inter-agency teams in crisis environments. Joint 
training of civilian and military teams is supported by the 
committee and the foreign affairs civilian agencies are 
strongly encouraged to participate in training offered by the 
Department of Defense or the regional commands.
    This section also cites illustrative contents of a training 
curriculum. One particular committee interest is in the area of 
``lessons learned.'' The Department of Defense has a ``lessons 
learned'' or ``After Action Review'' process that could serve 
as a guide to establishing the same capacity within the State 
Department and USAID and could be a key component of 
preparation for future actions. Also needed is training in 
conflict resolution. Post-conflict situations are dynamic and 
difficult in the best of circumstances and personnel should be 
trained with essential conflict and dispute resolution 
techniques.
    Training should be available for both the Response 
Readiness Corps and the Reserves, including volunteers from the 
private sector who have been accepted into the Reserves.

Section 9. Service Related to Stabilization and Reconstruction

    This section is designed to encourage service in 
stabilization and reconstruction activities which may fall 
outside the normal career path of Foreign Service officers and 
USAID employees. It designates that certain service or 
assignment in these areas should be considered among the 
favorable factors for promotion of employees of executive 
agencies and authorizes the creation of incentives and benefits 
as appropriate to recognize and reward participants. In terms 
of training and promotion, this section describes steps that 
the Secretary of State and USAID Administrator should take to 
ensure employees are properly trained and identified for 
deployment in support of the Corps. This training should also 
be provided to Ambassadors and Deputy Chiefs of Mission.
    The U.S. Government should place a high premium on 
developing competency in the skills necessary to anticipate and 
address crises. Critical to the establishment of an effective 
cadre of people with special skills, experience, interest, and 
commitment needed for such challenging missions is the 
appropriate recognition of such service as professionally 
rewarding. The environment in which civil servants, Foreign 
Service officers, and others perform and advance must be 
flexible enough to allow for success for personnel who follow 
less traditional career paths and who may not reach executive 
management positions because of the unpredictable nature of 
their deployments. Incentives within all agencies must 
recognize the value of personnel committed to these challenging 
tasks.

Section 10. Authorities Related to Personnel

    This section provides contracting authority and 
reimbursement procedures for personnel, outlines procedures for 
hiring experts and consultants and grants certain authorities 
to accept and assign details from other executive agencies, 
members of the uniformed services and employees of State and 
local governments. The section also provides certain waiver 
authorities for dual compensation prohibitions for Federal 
retirees. The Secretary may extend benefits to any individual 
deployed under this Act as provided in the Foreign Service Act 
just as they are applicable to members of the Foreign Service.
    This section also authorizes compensatory time off for 
individuals assigned, detailed or deployed to carry out 
stabilization and reconstruction activities under this Act, 
subject to the consent of the employee. This section also 
increases the premium pay cap for certain individuals. The 
section authorizes the acceptance of volunteer services from 
advisors, experts, consultants and persons performing services 
in any other capacity determined appropriate by the Secretary 
and directs the Secretary to supervise such volunteers. 
Finally, it provides that volunteers are not to be considered 
Federal employees, except with regard to certain provisions of 
Federal law, including conflict of interest requirements.

Section 11. Authorization of Appropriations

    This section authorizes appropriations of $80 million for 
the recruitment of new personnel, education and training, and 
equipment and travel necessary for carrying out the Act. Of 
that amount, $8 million is authorized to be appropriated to 
establish the Office of International Stabilization and 
Reconstruction for salaries, overhead, travel, per diem and 
related costs.

                            V. Cost Estimate

    In accordance with rule XXVI, paragraph 11(a) of the 
Standing Rules of the Senate, the committee provides the 
following estimate of the cost of this legislation prepared by 
the Congressional Budget Office.

                            United States Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 17, 2004.

Honorable Richard G. Lugar, Chairman
Committee on Foreign Relations,
United States Senate,
Washington, DC.

    Dear Mr. Chairman:

    The Congressional Budget Office has prepared the enclosed 
cost estimate for S. 2127, the Stabilization and Reconstruction 
Civilian Management Act of 2004.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Joseph C. 
Whitehill.

            Sincerely,
                              Douglas Holtz-Eakin, Director

    Enclosure.

 S. 2127--Stabilization and Reconstruction Civilian Management Act of 
                                  2004

                                SUMMARY

    S. 2127 would authorize the President to provide assistance 
to stabilize and rebuild a country or region that is in, or 
emerging from, conflict or civil strife. The bill would 
authorize assistance to respond to international crises through 
a new contingency fund and it would establish an Office of 
International Stabilization and Reconstruction within the 
Department of State to provide civilian management of 
stabilization and reconstruction efforts. The bill would 
authorize an initial appropriation of $100 million for the 
contingency fund plus such sums as may be necessary to 
replenish funds expended. It also would authorize $80 million 
for the initial costs of salaries and expenses to establish and 
manage stabilization and reconstruction efforts.
    CBO estimates that implementing the bill would cost about 
$50 million in 2005 and $550 million over the 2005-2009 period, 
assuming the appropriation of the necessary funds. The bill 
would not affect direct spending or receipts.
    S. 2127 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.

                ESTIMATED COST TO THE FEDERAL GOVERNMENT

    The estimated budgetary impact of S. 2127 is shown in the 
following table. The costs of this legislation fall within 
budget function 150 (international affairs).
    The estimated budgetary impact of S. 2127 is shown in the 
following table. The costs of this legislation fall within 
budget function 150 (international affairs).

 
------------------------------------------------------------------------
                                       By Fiscal Year, in Millions of
                                                   Dollars
                                   -------------------------------------
                                     2004   2005  2006  2007  2008  2009
------------------------------------------------------------------------
 
                    SPENDING SUBJECT TO APPROPRIATION
 
Proposed Spending for
 Stabilization and Reconstruction
 under S. 2127
    Estimated Authorization Level     0    180    101   149   153   156
    Estimated Outlays                 0     51     98   119   135   145
------------------------------------------------------------------------

                           BASIS OF ESTIMATE

    S. 2127 would provide the President with the authority and 
capacity to quickly respond to international crises using 
civilian agencies of the federal government. For this estimate, 
CBO assumes the bill will be enacted before the end of the 
current session of the Congress and that the $180 million in 
funds initially authorized to carry out the bill will be 
appropriated for 2005. CBO expects that implementing the bill 
would require additional appropriations in 2006 and each 
subsequent year.
    Response Readiness Corps. The bill would establish a new 
office within the Department of State with responsibility to 
monitor and assess international crises, to prepare contingency 
plans for various types of crises, to identify and train 
personnel with necessary skills for stabilization and 
reconstruction operations, and to coordinate the U.S. efforts 
should the President decide to respond to any crisis. The bill 
also would authorize the establishment of a response readiness 
corps with up to 250 members to staff the office and for 
deployment on short notice, plus a readiness reserve from 
current federal employees and up to 500 non-federal personnel 
to support operations if needed. Based on information about the 
cost of operating offices of comparable size within the State 
Department, CBO estimates that once established, the office 
would have operating costs of $40 million to $50 million a 
year. Assuming that it would take a year to recruit and train 
the members of the readiness corps, CBO estimates the $80 
million authorized for salaries and expenses would cover the 
first two years of operations.
    In 2007 and each year thereafter, CBO estimates that 
maintaining the office and the readiness and reserve corps 
would require the appropriation of $45 million in 2005 dollars, 
adjusted annually for inflation. We expect outlays would follow 
spending rates for diplomatic and consular programs.
    Stabilization and Reconstruction Funding. S. 2127 would 
authorize the appropriation of $100 million for a contingency 
fund to respond to international crises should the President 
determine that it is in the national interest to do so, plus 
such sums as may be necessary to replenish amounts expended. In 
addition, the bill would authorize the President to waive the 
percentage and aggregate dollar limitations in current law 
regarding various authorities to draw down or to transfer 
resources to respond to such crises.
    Given the size of the authorized fund, CBO estimates that 
the fund would be used for an initial response to an 
international crisis and not for major reconstruction efforts. 
Considering the number of regions in the world in conflict or 
recovering from conflict and that appropriations for the 
reconstruction of Iraq and Afghanistan have totaled over $20 
billion in 2003 and 2004, reconstruction could require much 
larger funding levels than the amounts authorized. For this 
estimate, CBO assumes that the fund would be replenished on an 
annual basis at the $100 million level, adjusted for inflation, 
and that it would be used for a mix of activities with an 
aggregate spending pattern similar to the Economic Support 
Fund.

              INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

    S. 2127 contains no intergovernmental or private-sector 
mandates as defined in UMRA and would not affect the budgets of 
state, local, or tribal governments.
    Estimate prepared by: Federal Costs: Joseph C. Whitehill. 
Impact on State, Local, and Tribal Governments: Melissa 
Merrill. Impact on the Private Sector: Paige Piper/Bach.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                  VI. Evaluation of Regulatory Impact

    In accordance with rule XXVI, paragraph 11(b) of the 
Standing Rules of the Senate, the committee has concluded that 
there is no regulatory impact from this legislation.

                      VII. Changes in Existing Law

    In compliance with paragraph 12 of Rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman).

                     Foreign Assistance Act of 1961

                                PART III

CHAPTER 1--GENERAL PROVISIONS

           *       *       *       *       *       *       *

SEC. 617. TERMINATION OF ASSISTANCE.

           *       *       *       *       *       *       *

SEC. 618. ASSISTANCE FOR A STABILIZATION AND RECONSTRUCTION CRISIS.

  (a) Authority.--If the President determines that it is 
important to the national interests of the United States for 
United States civilian agencies or non-Federal employees to 
assist in stabilizing and reconstructing a country or region 
that is in, or is in transition from, conflict or civil strife, 
the President may, in accordance with the provisions set forth 
in section 614(a)(3), notwithstanding any other provision of 
law, and on such terms and conditions as the President may 
determine, furnish assistance to respond to the crisis.
  (b) Special Authorities.--To provide assistance authorized in 
subsection (a), the President may exercise the authorities 
contained in sections 552(c)(2), 610, and 614 of this Act 
without regard to the percentage and aggregate dollar 
limitations contained in such sections.
  (c) Authorization of Funding.--
          (1) Initial authorization.--There is authorized to be 
        appropriated, without fiscal year limitation, 
        $100,000,000 in funds that may be used to provide 
        assistance authorized in subsection (a).
          (2) Replenishment.--There is authorized to be 
        appropriated each fiscal year such sums as may be 
        necessary to replenish funds expended as provided under 
        paragraph (1). Funds authorized to be appropriated 
        under this paragraph shall be available without fiscal 
        year limitation for the same purpose and under the same 
        conditions as are provided under paragraph (1).

State Department Basic Authorities Act of 1956

           *       *       *       *       *       *       *

                  TITLE I--BASIC AUTHORITIES GENERALLY

ORGANIZATION OF THE DEPARTMENT OF STATE

           *       *       *       *       *       *       *

SEC. 58. PROHIBITION ON FUNDING THE INVOLUNTARY RETURN OF REFUGEES.

           *       *       *       *       *       *       *

SEC. 59. INTERNATIONAL STABILIZATION AND RECONSTRUCTION.

  (a) Office of International Stabilization and 
Reconstruction.--
          (1) Establishment.--The Secretary shall establish 
        within the Department of State an Office of 
        International Stabilization and Reconstruction.
          (2) Coordinator for international stabilization and 
        reconstruction.--The head of the Office shall be the 
        Coordinator for International Stabilization and 
        Reconstruction, who shall be appointed by the 
        President, by and with the advice and consent of the 
        Senate. The Coordinator shall report directly to the 
        Secretary and shall have the rank and status of 
        Ambassador-at-Large.
          (3) Functions.-- The functions of the Office of 
        International Stabilization and Reconstruction include 
        the following:
                  (A) Monitoring, in coordination with relevant 
                bureaus within the Department of State, 
                political and economic instability worldwide to 
                anticipate the need for mobilizing United 
                States and international assistance for the 
                stabilization and reconstruction of countries 
                or regions that are in, or are in transition 
                from, conflict or civil strife.
                  (B) Assessing the various types of 
                stabilization and reconstruction crises that 
                could occur and cataloging and monitoring the 
                non-military resources and capabilities of 
                Executive agencies that are available to 
                address such crises.
                  (C) Planning to address requirements, such as 
                demobilization, policing, human rights 
                monitoring, and public information, that 
                commonly arise in stabilization and 
                reconstruction crises.
                  (D) Coordinating with relevant Executive 
                agencies (as that term is defined in section 
                105 of title 5, United States Code) to develop 
                interagency contingency plans to mobilize and 
                deploy civilian personnel to address the 
                various types of such crises.
                  (E) Entering into appropriate arrangements 
                with other Executive agencies to carry out 
                activities under this section and the 
                Stabilization and Reconstruction Civilian 
                Management Act of 2004.
                  (F) Identifying personnel in State and local 
                governments and in the private sector who are 
                available to participate in the Response 
                Readiness Corps or the Response Readiness 
                Reserve established under subsection (b) or to 
                otherwise participate in or contribute to 
                stabilization and reconstruction activities.
                  (G) Ensuring that training of civilian 
                personnel to perform such stabilization and 
                reconstruction activities is adequate and, as 
                appropriate, includes security training that 
                involves exercises and simulations with the 
                Armed Forces, including the regional commands.
                  (H) Sharing information and coordinating 
                plans for stabilization and reconstruction 
                activities with rapid response elements of the 
                United Nations and its specialized agencies, 
                nongovernmental organizations, and other 
                foreign national and international 
                organizations.
                  (I) Coordinating plans and procedures for 
                joint civilian-military operations with respect 
                to stabilization and reconstruction activities.
                  (J) Maintaining the capacity to field on 
                short notice an evaluation team to undertake 
                on-site needs assessment.
  (b) Response to Stabilization and Reconstruction Crisis.--If 
the President makes a determination regarding a stabilization 
and reconstruction crisis under section 618 of the Foreign 
Assistance Act of 1961, the President may designate the 
Coordinator, or such other individual as the President may 
determine appropriate, as the coordinator of the United States 
response. The individual so designated, or, in the event the 
President does not make such a designation, the Coordinator for 
International Stabilization and Reconstruction, shall--
          (1) assess the immediate and long-term need for 
        resources and civilian personnel;
          (2) identify and mobilize non-military resources to 
        respond to the crisis; and
          (3) coordinate the activities of the other 
        individuals or management team, if any, designated by 
        the President to manage the United States response.
  (c) Response Readiness Force.--
          (1) Response readiness corps.--
                  (A) Establishment and purpose.--The 
                Secretary, in consultation with the 
                Administrator of the United States Agency for 
                International Development, is authorized to 
                establish a Response Readiness Corps (hereafter 
                referred to in this section as the ``Corps'') 
                to provide assistance in support of 
                stabilization and reconstruction activities in 
                foreign countries or regions that are in, or 
                are in transition from, conflict or civil 
                strife.
                  (B) Composition.--The Secretary and 
                Administrator of the United States Agency for 
                International Development should coordinate in 
                the recruitment, hiring, and training of--
                          (i) up to 250 personnel to serve in 
                        the Corps; and
                          (ii) such other personnel as the 
                        Secretary, in consultation with the 
                        Administrator, may designate as members 
                        of the Corps from among employees of 
                        the Department of State and the United 
                        States Agency for International 
                        Development.
                  (C) Training.--The Secretary shall train the 
                members of the Corps to perform services 
                necessary to carry out the purpose of the Corps 
                under subparagraph (A).
                  (D) Compensation.--Members of the Corps hired 
                under subparagraph (B)(i) shall be compensated 
                in accordance with the appropriate salary class 
                for the Foreign Service, as set forth in 
                sections 402 and 403 of the Foreign Service Act 
                of 1980 (22 U.S.C. 3962 and 22 U.S.C. 3963), or 
                in accordance with the relevant authority under 
                sections 3101 and 3392 of title 5, United 
                States Code.
          (2) Response readiness reserve.--
                  (A) Establishment and purpose.--The 
                Secretary, in consultation with the heads of 
                other relevant Executive agencies, is 
                authorized to establish and maintain a roster 
                of personnel who are trained and available as 
                needed to perform services necessary to carry 
                out the purpose of the Corps under paragraph 
                (1)(A). The personnel listed on the roster 
                shall constitute a Response Readiness Reserve 
                to augment the Corps.
                  (B) Federal employees.--The Response 
                Readiness Reserve may include employees of the 
                Department of State, including Foreign Service 
                Nationals, employees of the United States 
                Agency for International Development, employees 
                of any other Executive agency (as that term is 
                defined in section 105 of title 5, United 
                States Code), and employees from the 
                legislative and judicial branches who--
                          (i) have the training and skills 
                        necessary to enable them to contribute 
                        to stabilization and reconstruction 
                        activities; and
                          (ii) have volunteered for deployment 
                        to carry out stabilization and 
                        reconstruction activities.
                  (C) Non-federal personnel.--The Response 
                Readiness Reserve should also include at least 
                500 personnel, which may include retired 
                employees of the Federal Government, contractor 
                personnel, nongovernmental organization 
                personnel, and State and local government 
                employees, who--
                          (i) have the training and skills 
                        necessary to enable them to contribute 
                        to stabilization and reconstruction 
                        activities; and
                          (ii) have volunteered to carry out 
                        stabilization and reconstruction 
                        activities.
          (3) Use of corps and reserve.--
                  (A) Response readiness corps.--The members of 
                the Corps shall be available--
                          (i) if responding in support of 
                        stabilization and reconstruction 
                        activities pursuant to a determination 
                        by the President regarding a 
                        stabilization and reconstruction crisis 
                        under section 618 of the Foreign 
                        Assistance Act of 1961, for deployment 
                        in support of such activities; and
                          (ii) if not responding as described 
                        in clause (i), for assignment in the 
                        United States, United States diplomatic 
                        missions, and United States Agency for 
                        International Development missions.
                  (B) Response readiness reserve.--The 
                Secretary may deploy members of the reserve 
                under paragraph (2) in support of stabilization 
                and reconstruction activities in a foreign 
                country or region if the President makes a 
                determination regarding a stabilization and 
                reconstruction crisis under section 618 of the 
                Foreign Assistance Act of 1961.

                      Foreign Service Act of 1980

        CHAPTER 7--CAREER DEVELOPMENT, TRAINING, AND ORIENTATION

  Sec. 701. Institution for Training.--(a) Institution or 
Center for Training.-- * * *

           *       *       *       *       *       *       *

  (f) * * *

           *       *       *       *       *       *       *

  (g) Stabilization and Reconstruction Curriculum.--
          (1) Establishment and mission.--The Secretary, in 
        cooperation with the Secretary of Defense and the 
        Secretary of the Army, is authorized to establish a 
        stabilization and reconstruction curriculum for use in 
        programs of the Foreign Service Institute, the National 
        Defense University, and the United States Army War 
        College.
          (2) Curriculum content.--The curriculum shall include 
        the following:
                  (A) An overview of the global security 
                environment, including an assessment of 
                transnational threats and an analysis of United 
                States policy options to address such threats.
                  (B) A review of lessons learned from previous 
                United States and international experiences in 
                stabilization and reconstruction activities.
                  (C) An overview of the relevant 
                responsibilities, capabilities, and limitations 
                of various Executive agencies (as that term is 
                defined in section 105 of title 5, United 
                States Code) and the interactions among them.
                  (D) A discussion of the international 
                resources available to address stabilization 
                and reconstruction requirements, including 
                resources of the United Nations and its 
                specialized agencies, nongovernmental 
                organizations, private and voluntary 
                organizations, and foreign governments, 
                together with an examination of the successes 
                and failures experienced by the United States 
                in working with such entities.
                  (E) A study of the United States interagency 
                system.
                  (F) Foreign language training.
                  (G) Training and simulation exercises for 
                joint civilian-military emergency response 
                operations.
  [(g)](h) The authorities of section 704 shall apply to 
training and instruction provided under this section.

                                  
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